(Nick Wagner/Austin American-Statesman via AP). FBI agents work the scene of an explosion in Austin, Texas, Sunday, March 18, 2018. At least a few people were injured in another explosion in Texas' capital late Sunday, after three package bombs detonat...

At least two people injured in another explosion in Texas' capital after three package bombs that detonated earlier this month in other parts of the city killed two people and injuring two others.More >>

At least two people injured in another explosion in Texas' capital after three package bombs that detonated earlier this month in other parts of the city killed two people and injuring two others.More >>

(AP Photo/Brian Skoloff, File). FILE - This April 2, 2017 file photo made with a drone, shows the U.S. Mexico border fence as it cuts through the two downtowns of Nogales, Ariz. A U.S. border patrol agent is going on trial for second-degree murder in U...

A Border Patrol agent is going on trial for second-degree murder this week in a rare Justice Department prosecution of a fatal cross-border Mexico shooting.More >>

A Border Patrol agent is going on trial for second-degree murder this week in a rare Justice Department prosecution of a fatal cross-border Mexico shooting.More >>

(AP Photo/Eric Gay). Federal investigators work near the site of Sunday's explosion, Monday, March 19, 2018, in Austin, Texas. Multiple people were injured in the explosion Sunday night, and police warned nearby residents to remain indoors overnight as...

Austin police chief's plea for bomber to come forward may be an attempt to coax the perpetrator to give additional clues.More >>

Austin police chief's plea for bomber to come forward may be an attempt to coax the perpetrator to give additional clues.More >>

Authorities said Friday that the cables suspending a pedestrian bridge were being tightened after a "stress test" when the 950-ton concrete span collapsed over traffic, killing at least six people and injuring 10

Authorities said Friday that the cables suspending a pedestrian bridge were being tightened after a "stress test" when the 950-ton concrete span collapsed over traffic, killing at least six people and injuring 10

The spirit of Miss USA award is determined by the judges based on letters that have been submitted by contestants' family and friends.

One of Holmgren's friends from her dance classes wrote a letter that was read aloud during the ceremony, said Denise Wallace, the co-director of the pageant.

"[Her friend] wrote about how Mikayla lights up a room and has no expectation for people to treat her differently. She's an incredible spirit," Wallace told ABC News, saying the letter captured everything that they felt encompasses the Miss USA spirit.

The director's award recognizes a young woman that is a standout in the pageant.

"Everyone loved her, every contestant, every family," said Wallace of Holmgren, adding that she feels as though Holmgren is "magnetic."

The audience gave Holmgren a standing ovation when she accepted the awards.

Doing pageants is one of her passions, Holmgren told KSTP.

Her previous pageant experience included her competing in the 2015 Miss Amazing pageant, a pageant for women with disabilities, said Wallace.

This is the second consecutive year that the Miss Minnesota USA pageant is making history.

Last year’s competition featured the first Somali-American woman wearing a hijab in the Miss Minnesota USA competition, Halima Aden.

She made it to the semifinals in the top 15 but didn’t make it to the top five.

Aden has since gone signed with a modeling agency and has been on numerous magazine covers, including Vogue, and her success has inspired others to follow in her footsteps, said Wallace.

This year's Miss Minnesota USA and Miss Minnesota Teen USA pageant included nine Muslim women, seven of which chose to wear their hijab during the competition, and Wallace said that Aden's success reminded women that the door is open for them to compete.

One of the Muslim women competing this year was among the top five finalists, winning fourth runner-up.

The competition is held annually and consists of three segments: evening gown, swimwear/active-wear, and an interview.

Kalie Wright was crowned Miss Minnesota USA on Sunday while Peyton Schroeder was crowned Miss Minnesota Teen USA. Both will now advance to compete in next year's national pageants.